House Passes Bill to Amend Volcker Rule to Permit Funds to Share Names with Certain Banking Entities

The House of Representatives voted to pass a bill (H.R. 4096, a.k.a. the "Investor Clarity and Bank Parity Act") to amend Section 13 of the Bank Holding Company Act (i.e., the Volcker Rule) to permit a hedge fund or private equity fund to share the same name, or any variation thereof, as a banking entity that is an investment adviser to the hedge fund or private equity fund subject to certain conditions.

In particular, the bill would require the following conditions:

• the investment adviser is not: (i) an insured depository institution; (ii) a company that controls an insured depository institution; or (iii) a company treated as a bank holding company for purposes of the International Banking Act relating to non-banking activities of foreign banks;

• the investment adviser does not share the same name, or any variation thereof, as: (i) an insured depository institution; (ii) a company that controls an insured depository institution; or (iii) a company treated as a bank holding company for the specified purposes of the International Banking; and

• the name does not contain the word "bank."